The AUD is currently range-bound against the FJD, showing stability within recent trading patterns. The interest rate differential favors the AUD, particularly with the anticipated increase by the Reserve Bank of Australia in early 2026. This potential hike, driven by rising inflation, promises to make the AUD more attractive to investors.
In contrast, the FJD faces pressures from external factors, such as the US tariffs impacting Fijian goods, leading to reduced export revenues and economic growth targets being revised downwards. The Fiji's central bank has maintained a low interest rate to support its economy, which further strengthens the AUD's position relative to the FJD.
The near-term trading range for AUD to FJD is expected to remain stable, fluctuating around current levels. Upside risks include stronger-than-expected Aussie economic performance or commodity price rises, while downside risks may stem from worsening global trade conditions or further economic slowdowns in Fiji.
